New research by CBRE, a global commercial real estate services and investment firm, has found that demand for AI infrastructure has led to a sharp increase in data center capacity commitments across Europe, with AI colocation signings quadrupling over the last one year. Emerging AI infrastructure providers, known as neoclouds, account for a growing share of new deals, many of which pertain to projects in the Nordic region.
Overall, CBRE’s research found that the total European data center market will grow to 13 GW of capacity by year end, a 20 percent rise compared to 2025. The hyperscaler self-build segment is projected to grow at 22 percent, which is faster than the colocation data center segment that is expected to grow at 18 percent year-on-year. However, it will comprise a smaller portion of the market.
However, the numbers get more interesting when it comes to AI-focused colocation signings, which totaled 420 MW in the first half (H1) of 2026, increasing from 89 MW during H1 2025. Moreover, 66 percent of the contracted capacity is expected to be delivered to neoclouds in the Nordic region, where operators can benefit from relatively low-cost, abundant renewable power.
According to a press release, the increase reflects greater willingness among data center operators and investors to work with neocloud companies. Some operators have used rental deposits, letters of credit and other financial protections to address concerns about counterparty risk and secure funding for projects.
Andrew Jay, Head of Data Centre Solutions, CBRE Europe, said, “Neoclouds have emerged as viable occupiers who are taking capacity at scale in markets typically where lower-cost power is the norm. It is a sign that many data center providers are increasingly comfortable with the ambitions of neocloud providers and the financial structures that can be used to satisfy the funders.”
Kevin Restivo, Director, European Data Centre Research, CBRE said, “The underlying demand for compute is immense. Several Neocloud companies have emerged with investment-grade customers, enabling them to secure capacity and support the growing requirements of AI workloads. As a result, we are seeing unprecedented growth in this segment with deployments in areas in parts of Europe where data center development isn’t the norm.”
The growth is also pushing development into European markets that have historically seen less data center construction. Neoclouds are securing capacity as they build infrastructure for customers with significant computing requirements. The surge in commitments signals a shift in the data center market as operators find ways to accommodate the financing and risk requirements associated with rapidly growing AI infrastructure companies.